Collective corruption, defined as coordinated wrongdoing that organizational members carry out on behalf of the organization, is an especially sub-category of wrongdoing. The consept of corruption reflects as infection of the group, organization or industry. Collective corruption is typically regarded as a top-down process whereby leaders directly encourage their subordinates to engage in wrongdoing. The identified reasons for subordinates compliance entail a lack of awareness of doing wrong, mindlessness, habituation and incentives. For example, reward structures may both incentivize and legitimize corrupt behaviours. [1] Organizational crime consists of any behaviour perpetrated by organizational officers (i.e. directors, managers, and/or employees), in the course of fulfilling their organizational roles, that is not judged by social control agents (i.e. prosecutors, judges etc.) to violate the law. Organizational crime can serve organization's interests. Alternatively, organizational crime can serve employees' interests. In some cases, organizational crime can serve both organization's and employee's interests. Some kinds of financial fraud, such ass the off-balance sheet entities by ENRON's top executives, had this character. [2]
Examples of collective corruption
In China a common form of rationalized collective corruption is setting up of ”small treasuries”, is found in many large private and state-owned Chinese enterprises. ”Small treasuries” are off-book accounts being set up for the purpose of financing private or even illegimate expenditure of work units. There are plenty of reported cases of off-book accounts, involving billions of dollars. [3] The intense focus on corporate corruption started by Enron and WorldCom has continued with discoveries of fraud in other organizations such as Tyco, HealthSouth and Parmalat. A notable feature of these and many other corruption cases is that they did not result from the actions of single individuals. Employees may collectively use rationalizations to neutralize any regrets or negative feelings that emanate from their participation in unethical acts. [4]
Recently, in September 2014, GlaxoSmithKline (GSK) fined USD 490m for paying out bribes to doctors and hospitals in order to have their products promoted[5] .
Anti-corruption work in Finland
According to Transparency International's (TI http://www.transparency.org) Corruption Perception Index (CPI)
(see also Transparency International and Corruption Measurements)
Finland was ranked 2013 as 3rd less corrupted country in the world, while receivers of Finland's development aid programm countries are ranked quite/very corrupted: Ethiopia 111th /177, Kenya 136th/177, Mozambique 119th/177, Nepal 116th/177 , Zambia 83rd/177, Tanzania 111th/177, Vietnam 116th/177, and three future aid-receiving countries will probably be Afghanistan 175th/177, South Sudan 173rd/177 and Palestine (n/a civil war).
It is really important to have anti-corruption guidelines and as well combat against (collective) corruption in developing countries to avoid the misuse of development aid money and guarantee that aid relief will reach the correct groups, targets and consignees.
Finnish development cooperation is deeply based on human rights, and therefore, there is no room for corruption, one of the worst forms of human rights violation. In 2011, Finnish foreign affairs adminstration detected 17 cases of abuse or suspected abuse in Somalia and Haiti, for example. [6]
Picture: Zambia – toll free number for reporting of corruption, Source: DLP – Developmental Leadership Programm
^ Smith-Crowe K, Warren DE. The emotion-evoked collective corruption model: The role of emotion in the spread of corruption within organizations. Organization Science. 2014.
^ Palmer D, Maher MW. Developing the process model of collective corruption. Journal of Management Inquiry. 2006;15(4):363-370.
^ Hung H. Normalized collective corruption in a transitional economy: Small treasuries in large chinese enterprises. J Bus Ethics. 2008;79(1-2):69-83.
^ Anand V, Ashforth BE, Joshi M. Business as usual: The acceptance and perpetuation of corruption in organizations. The Academy of Management Executive. 2004;18(2):39-53.
Table of Contents
Definition
Collective corruption, defined as coordinated wrongdoing that organizational members carry out on behalf of the organization, is an especially sub-category of wrongdoing. The consept of corruption reflects as infection of the group, organization or industry. Collective corruption is typically regarded as a top-down process whereby leaders directly encourage their subordinates to engage in wrongdoing. The identified reasons for subordinates compliance entail a lack of awareness of doing wrong, mindlessness, habituation and incentives. For example, reward structures may both incentivize and legitimize corrupt behaviours. [1]Organizational crime consists of any behaviour perpetrated by organizational officers (i.e. directors, managers, and/or employees), in the course of fulfilling their organizational roles, that is not judged by social control agents (i.e. prosecutors, judges etc.) to violate the law. Organizational crime can serve organization's interests. Alternatively, organizational crime can serve employees' interests. In some cases, organizational crime can serve both organization's and employee's interests. Some kinds of financial fraud, such ass the off-balance sheet entities by ENRON's top executives, had this character. [2]
Examples of collective corruption
In China a common form of rationalized collective corruption is setting up of ”small treasuries”, is found in many large private and state-owned Chinese enterprises. ”Small treasuries” are off-book accounts being set up for the purpose of financing private or even illegimate expenditure of work units. There are plenty of reported cases of off-book accounts, involving billions of dollars. [3]The intense focus on corporate corruption started by Enron and WorldCom has continued with discoveries of fraud in other organizations such as Tyco, HealthSouth and Parmalat. A notable feature of these and many other corruption cases is that they did not result from the actions of single individuals. Employees may collectively use rationalizations to neutralize any regrets or negative feelings that emanate from their participation in unethical acts. [4]
Recently, in September 2014, GlaxoSmithKline (GSK) fined USD 490m for paying out bribes to doctors and hospitals in order to have their products promoted[5] .
Anti-corruption work in Finland
According to Transparency International's (TI http://www.transparency.org) Corruption Perception Index (CPI)(see also Transparency International and Corruption Measurements)
Finland was ranked 2013 as 3rd less corrupted country in the world, while receivers of Finland's development aid programm countries are ranked quite/very corrupted: Ethiopia 111th /177, Kenya 136th/177, Mozambique 119th/177, Nepal 116th/177 , Zambia 83rd/177, Tanzania 111th/177, Vietnam 116th/177, and three future aid-receiving countries will probably be Afghanistan 175th/177, South Sudan 173rd/177 and Palestine (n/a civil war).
It is really important to have anti-corruption guidelines and as well combat against (collective) corruption in developing countries to avoid the misuse of development aid money and guarantee that aid relief will reach the correct groups, targets and consignees.
Finnish development cooperation is deeply based on human rights, and therefore, there is no room for corruption, one of the worst forms of human rights violation. In 2011, Finnish foreign affairs adminstration detected 17 cases of abuse or suspected abuse in Somalia and Haiti, for example. [6]
External links
Korruption vastainen työhttp://formin.finland.fi/public/default.aspx?contentId=204889&nodeId=43749&contentlan=1&culture=fi-FI
Tansaniassa korruptiota seurataan verkossa http://formin.finland.fi/public/default.aspx?contentId=165665&nodeId=15145&contentlan=1&culture=fi-FI
Handbook to increase effectiveness of anti-corruption effortshttp://formin.finland.fi/public/default.aspx?contentid=256778&nodeid=23&contentlan=2&culture=en-US
Paras keino korruption kitkemiseksi on kehityshttp://formin.finland.fi/public/default.aspx?contentId=265230&nodeId=23&contentlan=1&culture=fi-FI
Picture: Zambia – toll free number for reporting of corruption, Source: DLP – Developmental Leadership Programm